NextDecade (NASDAQ:NEXT) Raised to "Strong-Buy" at Zacks Research

Key Points

• Zacks Research upgraded NextDecade to “Strong Buy” from “Hold,” although analyst opinions remain mixed. MarketBeat reports a consensus “Moderate Buy” rating and an $8.10 price target.
• NextDecade reported quarterly EPS of $0.54, exceeding the consensus estimate of a $0.71 loss. Shares opened at $7.38, with a market capitalization of approximately $1.96 billion.
• The Rio Grande LNG project is reportedly ahead of schedule, with first LNG production from Train 1 expected in the second quarter of 2027 and a potential Train 6 investment decision targeted for the second half of 2027; however, high leverage, weak liquidity and construction or regulatory delays remain key risks.

NextDecade (NASDAQ:NEXT - Get Free Report) was upgraded by analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued to clients and investors on Thursday, Zacks reports.

A number of other analysts also recently issued reports on NEXT. Wall Street Zen downgraded NextDecade from a "sell" rating to a "strong sell" rating in a research note on Saturday, October 24th. UBS Group reiterated a "neutral" rating on shares of NextDecade in a research report on Friday. Weiss Ratings reissued a "sell (d-)" rating on shares of NextDecade in a report on Thursday, October 22nd. Finally, The Goldman Sachs Group reissued a "neutral" rating on shares of NextDecade in a report on Friday. Two analysts have rated the stock with a Strong Buy rating, one has given a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, NextDecade currently has a consensus rating of "Moderate Buy" and a consensus price target of $8.10.

NextDecade Stock Up 1.7%

NEXT opened at $7.38 on Thursday. The company has a market capitalization of $1.96 billion, a PE ratio of -18.45 and a beta of 1.53. The firm has a 50-day simple moving average of $6.86 and a two-hundred day simple moving average of $6.94. The company has a quick ratio of 0.37, a current ratio of 0.37 and a debt-to-equity ratio of 3.70. NextDecade has a 52 week low of $4.75 and a 52 week high of $9.24.

NextDecade (NASDAQ:NEXT - Get Free Report) last issued its earnings results on Thursday, October 29th. The company reported $0.54 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.71) by $1.25. Analysts forecast that NextDecade will post -2.10 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in NEXT. Collective Family Office LLC raised its holdings in shares of NextDecade by 13.4% in the 2nd quarter. Collective Family Office LLC now owns 17,194 shares of the company's stock valued at $130,000 after purchasing an additional 2,033 shares in the last quarter. NewEdge Advisors LLC lifted its position in shares of NextDecade by 112.5% in the 2nd quarter. NewEdge Advisors LLC now owns 5,327 shares of the company's stock worth $40,000 after purchasing an additional 2,820 shares during the period. Farther Finance Advisors LLC lifted its position in shares of NextDecade by 58.5% in the 3rd quarter. Farther Finance Advisors LLC now owns 7,816 shares of the company's stock worth $50,000 after purchasing an additional 2,886 shares during the period. EverSource Wealth Advisors LLC lifted its position in shares of NextDecade by 302.8% in the 1st quarter. EverSource Wealth Advisors LLC now owns 4,205 shares of the company's stock worth $32,000 after purchasing an additional 3,161 shares during the period. Finally, Nykredit A S bought a new position in shares of NextDecade during the second quarter valued at approximately $25,000. Hedge funds and other institutional investors own 66.74% of the company's stock.

Key Headlines Impacting NextDecade

Here are the key news stories impacting NextDecade this week:

• Positive Sentiment: Rio Grande LNG is reportedly ahead of schedule. NextDecade said it expects first LNG production from Train 1 in the second quarter of 2027, with project progress described as approximately one quarter ahead of schedule. Earlier production would improve the company’s path toward revenue generation and support investor confidence. NextDecade expects first LNG from Train 1 in Q2 2027 and targets Train 6 FID in second half of next year
• Positive Sentiment: Management is targeting additional expansion. NextDecade plans to make a final investment decision on Train 6 in the second half of 2027. The company also outlined a regulatory timeline for later Rio Grande LNG trains, potentially strengthening its long-term growth outlook. NextDecade offers regulatory timeline for latest Rio Grande LNG trains
• Positive Sentiment: Third-quarter results exceeded expectations. NextDecade reported earnings of $0.54 per share versus the consensus estimate of a $0.71 per-share loss, marking a significant swing to profitability and helping drive the positive market reaction. NextDecade Provides Third Quarter 2026 Business Update
• Neutral Sentiment: Options activity indicated increased bullish speculation. Traders purchased 2,936 call options, about 16% above typical volume. This may reflect expectations for further gains, but it does not necessarily represent long-term investment conviction.
• Negative Sentiment: Execution and financing remain important risks. NextDecade still faces the usual construction, regulatory and commissioning risks associated with a large LNG project. Its elevated leverage and weak liquidity metrics also leave the stock sensitive to cost overruns, delays or additional funding requirements.

About NextDecade

NextDecade Corporation is an energy company focused on developing liquefied natural gas (LNG) infrastructure and related carbon-management solutions. The company's principal project is Rio Grande LNG, an LNG export facility located near Brownsville, Texas, on the U.S. Gulf Coast.

Rio Grande LNG is designed to receive natural gas, process it into LNG, and export the product by ship to customers in international markets. The project is being developed in multiple phases and is intended to serve energy markets in Europe, Asia and other regions seeking access to U.S.

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